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• Publication Date: 06/28/2017
• Publication Type: Proposed Rule
• Fed Register #: 82:29261-29263
• Standard Number: 1904
• Title: Improve Tracking of Workplace Injuries and Illnesses: Proposed Delay of Compliance Date


  [Federal Register Volume 82, Number 123 (Wednesday, June 28, 2017)]
  [Proposed Rules]
  [Pages 29261-29263]
  From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
  [FR Doc No: 2017-13550]


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  DEPARTMENT OF LABOR

  Occupational Safety and Health Administration

  29 CFR Part 1904

  [Docket No. OSHA-2013-0023]
  RIN 1218-AD16


  Improve Tracking of Workplace Injuries and Illnesses: Proposed
  Delay of Compliance Date

  AGENCY: Occupational Safety and Health Administration, Department of
  Labor.

  ACTION: Proposed rule; delay of compliance date.

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  SUMMARY: On May 12, 2016, the Occupational Safety and Health
  Administration (OSHA) published a rule entitled "Improve Tracking of
  Workplace Injuries and Illnesses" with an effective date of January 1,
  2017 for the final rule's electronic reporting requirements. The final
  rule sets an initial deadline of July 1, 2017, as the date by which
  certain employers are required to submit the information from their
  completed 2016 Form 300A to OSHA electronically. This action proposes
  to extend the initial submission deadline for 2016 Form 300A data to
  December 1, 2017, to provide the new administration an opportunity to
  review the new electronic reporting requirements prior to their
  implementation and allow affected entities sufficient time to
  familiarize themselves with the electronic reporting system, which will
  not be available until August 1. The proposed five-month delay would be
  effective on the date of publication of a final rule in the Federal
  Register. OSHA also intends to issue a separate proposal to reconsider,
  revise, or remove other provisions of the prior final rule. OSHA will
  seek comment on those provisions in that separate proposal. In this
  proposal, OSHA only seeks comment on the delay of the July 1, 2017
  compliance date to December 1, 2017.

  DATES: Written comments must be submitted (postmarked, sent, or
  received) by July 13, 2017.

  ADDRESSES:
      Written comments. You may submit comments, identified by Docket No.
  OSHA-2013-0023, by any of the following methods:
      Electronically: You may submit comments and attachments
  electronically at http://www.regulations.gov, which is the Federal e-
  Rulemaking Portal. Follow the instructions online for making electronic
  submissions. When uploading multiple attachments into Regulations.gov,
  please number all of your attachments because http://www.regulations.gov will
  not automatically number the attachments. This will be very useful in
  identifying all attachments in the rulemaking docket. For example,
  Attachment 1_title of your document, Attachment 2_title of your
  document, Attachment 3_title of your document, etc. Specific
  instructions on uploading all documents are found in the Facts, Answer,
  Questions portion and the commenter check list on the Regulations.gov
  Web page.
      Fax: If your submissions, including attachments, are not longer
  than 10 pages, you may fax them to the OSHA Docket Office at (202) 693-
  1648.
      Mail, hand delivery, express mail, messenger, or courier service:
  You may submit your comments to the OSHA Docket Office, Docket No.
  OSHA-2013-0023, Room N-3653, U.S. Department of Labor, 200 Constitution
  Avenue NW., Washington, DC 20210; telephone (202) 693-2350 (TTY (887)
  889-5627). OSHA's Docket Office accepts deliveries (hand deliveries,
  express mail, and messenger/courier service) from 10 a.m. to 3 p.m.
  e.t., weekdays.
      Instructions: All submissions must include the Agency name and the
  docket number for this rulemaking (Docket No. OSHA-2013-0023). All
  comments, including any personal information you provide, are placed in
  the public docket without change and may be made available online at:
  http://www.regulations.gov. Therefore, OSHA cautions you not to submit
  personal information such as Social Security numbers and birthdates.
      Docket: To read or download comments and materials submitted in
  response to this Federal Register notice, go to Docket No. OSHA-2013-
  0023 at http://www.regulations.gov, or to the OSHA Docket Office at the
  address above. All comments and submissions are listed in the http://www.regulations.gov index; however, some information (e.g., copyrighted
  material) is not publicly available to read or download through that
  Web site. All comments and submissions are available for inspection at
  the OSHA Docket Office.
      Electronic copies of this Federal Register document are available
  at http://www.regulations.gov. Copies also are available from the OSHA
  Office of Publications, Room N-3101, U.S. Department of Labor, 200
  Constitution Avenue NW., Washington, DC 20210; telephone (202) 693-
  1888. This document, as well as news releases and other relevant
  information, is also available at OSHA's Web site at http://www.osha.gov.

  FOR FURTHER INFORMATION CONTACT: For press inquiries: Frank Meilinger,
  Director, Office of Communications, Room N-3647, OSHA, U.S. Department
  of Labor, 200 Constitution Avenue NW., Washington, DC 20210; telephone
  (202) 693-1999; email meilinger.francis2@dol.gov.
      For general and technical information: Miriam Schoenbaum, OSHA,
  Office of Statistical Analysis, Room N-3507, U.S. Department of Labor,
  200 Constitution Avenue NW., Washington, DC 20210; telephone (202) 693-
  1841; email: schoenbaum.miriam@dol.gov

  SUPPLEMENTARY INFORMATION:

  A. Background

      On May 12, 2016, the Occupational Safety and Health Administration
  (OSHA) published a rule entitled "Improve Tracking of Workplace
  Injuries and Illnesses" with an effective date of January 1, 2017, for
  the final rule's electronic reporting requirements (81 FR 29624). Under
  these requirements, certain employers who were required to complete
  Form 300A in 2016 must submit the information on the form to OSHA
  electronically by July 1, 2017.
      The Department proposes to delay the initial deadline for
  electronic submission of 2016 300A data from July 1, 2017, to December
  1, 2017. The data collection system was originally intended to launch
  in February 2017. This would have given employers four months to submit
  their data in time for the due date of July 1. However, the launch was
  postponed. OSHA now expects to launch the data collection system by
  August 1, and the proposed due date of December 1 will allow OSHA to
  provide employers the same four-month window to electronically submit
  their 2016 Form 300A data. This delay will also to provide the new
  administration the opportunity to review the new electronic reporting
  requirements prior to their implementation and allow affected entities
  sufficient time to familiarize themselves with the electronic reporting
  system, which will not be available until August 1. OSHA seeks comment
  by July 13, 2017 on its proposal to extend the submission deadline by
  five months to December 1, 2017. OSHA also intends to issue a separate
  proposal to reconsider, revise, or remove other

  provisions of the prior final rule. OSHA will seek comment on those
  provisions in that separate proposal. In this proposal, OSHA only seeks
  comment on the delay of the July 1, 2017 compliance date to December 1,
  2017.

  B. Preliminary Economic Analysis

      OSHA is proposing to delay the implementation of the electronic
  reporting requirements of the Improve Tracking of Workplace Injuries
  and Illnesses rule by five months. By July 1, 2017, all establishments
  were to electronically report their summary data (Form 300A). The
  proposed new date for reporting is December 1, 2017. The cost savings
  for this delay are $59,310, or $6,953 per year annualized at three
  percent over the same 10-year period OSHA used in the initial
  rulemaking. At a 7 percent discount rate, the cost savings of the
  proposed delay are $134,689, or $19,177 per year annualized over 10
  years.
      These cost savings are calculated as follows. First, OSHA
  subtracted costs not applicable to the proposed delay from the original
  private-sector cost of the final rule. The subtracted costs include the
  costs of familiarization and checking by unregulated establishments
  (both of which would have taken place after the rule was published in
  May 2016), the costs of the non-discrimination provision (which became
  enforceable in 2016), and the costs of submission of case data (the
  OSHA Log data) (which is not required until 2018). This yields a
  private-sector cost of $4,845,365 per year, for the parts of the
  original rule relevant to the proposed delay of the first year's
  submission date from July 1, 2017, to December 1, 2017.
      This cost represents the cost of electronically submitting the
  required 2016 information from the OSHA Form 300A in 2017. The affected
  employers have already gathered and recorded this information, as
  required by a different section of Part 1904.
      This proposed delay will only affect costs for this year (2017);
  this proposal does not affect the deadlines for electronic submission
  in subsequent years. Thus, the only cost savings associated with this
  proposal are for delaying the deadline for the electronic submission of
  previously-recorded data by five months, from July 1, 2017, to December
  1, 2017.
      The cost savings of the delay are estimated based on the interest
  that can now be earned on the funds involved while the report for the
  first year is delayed.\1\ At a 3 percent discount rate, this results in
  a one-time cost savings of $59,310, or $6,953 per year annualized over
  10 years. At a 7 percent discount rate, this results in a one-time cost
  savings of $134,689, or $19,177 per year annualized over 10 years.
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      \1\ The entire derivation is as follows: OSHA begins with a
  current private sector cost of the original rule of $4,845,365 times
  the discount rate value of the delay of (1+d[caret]-(5/12). OSHA
  then subtracts this value (which is $4,786,055 at 3 percent) from
  the full value of $4,845,365. This results in a difference of
  $59,310, which can be annualized at 3 percent as $6,953.
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      The Agency notes that it did not include an overhead labor cost in
  the Final Economic Analysis (FEA) for this rule. It is important to
  note that there is not one broadly accepted overhead rate and that the
  use of overhead to estimate the marginal costs of labor raises a number
  of issues that should be addressed before applying overhead costs to
  analyze the costs of any specific regulation. There are several
  approaches to look at the cost elements that fit the definition of
  overhead, and there are a range of overhead estimates currently used
  within the federal government--for example, the Environmental
  Protection Agency has used 17 percent,\2\ and government contractors
  have been reported to use an average of 77 percent.3 4 Some
  overhead costs, such as advertising and marketing, may be more closely
  correlated with output than with labor. Other overhead costs vary with
  the number of new employees. For example, rent or payroll processing
  costs may change little with the addition of 1 employee in a 500-
  employee firm, but may change substantially with the addition of 100
  employees. If an employer is able to rearrange current employees'
  duties to implement a rule, then the marginal share of overhead costs
  such as rent, insurance, and major office equipment (e.g., computers,
  printers, copiers) would be very difficult to measure with accuracy
  (e.g., computer use costs associated with two hours for rule
  familiarization by an existing employee).
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      \2\ Cody Rice, U.S. Environmental Protection Agency, "Wage
  Rates for Economic Analyses of the Toxics Release Inventory
  Program," June 10, 2002.
      \3\ Grant Thornton LLP, 2015 Government Contractor Survey.
  (https://www.grantthornton.com/~/media/content-page-files/public-sector/pdfs/surveys/2015/Gov-Contractor-Survey.ashx)
      \4\ For further example of overhead cost estimates, please see
  the Employee Benefits Security Administration's guidance at https://www.dol.gov/sites/default/files/ebsa/laws-and-regulations/rules-and-regulations/technical-appendices/labor-cost-inputs-used-in-ebsa-opr-ria-and-pra-burden-calculations-august-2016.pdf.
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      If OSHA had included an overhead rate when estimating the marginal
  cost of labor, without further analyzing an appropriate quantitative
  adjustment, and adopted for these purposes an overhead rate of 17
  percent on base wages, as was done in a sensitivity analysis in the FEA
  in support of OSHA's 2016 final rule on Occupational Exposure to
  Respirable Crystalline Silica, the base wages would increase annualized
  cost savings by approximately $1,822 per year using a 3 percent
  discount rate and by $3,260 a year using a 7 percent discount rate.
  (Note that all costs of this proposed rule are labor costs.)
      As noted below, OSHA has stated that the data submission
  requirements of the original final rule would lead employers to
  increase workplace safety and health; although the costs of the safety-
  and health-improving actions have not been quantified, the savings
  associated with a delay of such costs would be analogous to those
  calculated for quantified costs.
      Table 1 summarizes the annualized and one-time cost savings.

              Table 1--Annualized and One-Time Cost Savings \5\
  ------------------------------------------------------------------------
                                              Annualized     One time cost
            Cost  savings  method               savings         savings
  ------------------------------------------------------------------------
  3 Percent Discount Rate.................          $6,953         $59,310
  7 Percent Discount Rate.................          19,177         134,689
  ------------------------------------------------------------------------


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      \5\ All cost savings are in 2014 dollars. Costs are annualized
  over ten years.
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      OSHA did not quantify the benefits of the final rule. In the
  economic analysis of the final rule, OSHA stated that the rule would
  improve OSHA's ability to identify, target, and remove safety and
  health hazards, thereby preventing workplace injuries, illnesses, and
  deaths. In addition, OSHA stated that the data submission requirements
  of the final rule would improve the quality of the information
  submitted and lead employers to increase workplace safety and health.
  OSHA also projected benefits associated with making the data publicly
  available. OSHA does not believe this relatively brief delay in initial
  submissions would have any effect on these benefits; however, because
  of the lack of quantification, there is some uncertainty as to what the
  impact will be. Other aspects of the final rule that OSHA determined
  would produce benefits, such as the non-discrimination provision and
  the collection of case characteristic data (OSHA Forms 300, 301) from
  establishments with 250 or more


  employees, would not be altered by this proposed action.
      This delay of five months is both economically and technologically
  feasible. The delay meets both criteria of feasibility because the
  original rule was economically and technologically feasible without a
  five-month delay.
      OSHA has considered whether this proposed change will have a
  significant economic impact on small firms. As a result of these
  considerations, in accordance with Sec.  605 of the Regulatory
  Flexibility Act, OSHA certifies that this proposed rule will not have a
  significant economic impact on a substantial number of small entities.
  Thus, OSHA did not prepare an initial regulatory flexibility analysis
  or conduct a SBREFA Panel.
      Consistent with EO 13771 (82 FR 9339, February 3, 2017), OSHA has
  estimated the annualized cost savings over 10 years for this proposed
  rule to range from $6,953 to $19,177, depending on the discount rate.
  Therefore, this proposed rule, if finalized, is expected to be an EO
  13771 deregulatory action.

  C. Paperwork Reduction Act

      This Notice of Proposed Rulemaking does not propose changes to the
  information collections already approved by OMB under control number
  1218-0176.

      Signed at Washington, DC, on June 22, 2017.
  Dorothy Dougherty,
  Deputy Assistant Secretary of Labor for Occupational Safety and Health.
  [FR Doc. 2017-13550 Filed 6-27-17; 8:45 am]
   BILLING CODE 4510-26-P




Federal Registers - Table of Contents

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